Markets pare gains, Sensex up 200pts

The markets have pared some of its gains, owing to partial weakness in the European markets. The Sensex is now up 199 points at 17,057, as against the day's high of 17,257. The Nifty is up 59 points at 5,132.
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(Updated at 1310 hrs)

The markets continued to trade firm in the noon trades owing to positive global cues. The BSE Sensex is at 17,165, up 307 points and the S&P CNX Nifty is at 5,170, up 97 points. Earlier in the day, the Sensex opened 1.5% higher at 17,245 and touched the day's high at 17,257.

The broader markets are firmly in line with the bourses with the BSE mid-cap index at 6,545, up 2% and the small-cap index at 7,678, up 3%.

The global indices had been battered through-out this week after Standard and Poor's downgraded the creditworthiness of the United States. But the decision of the US Federal Reserve to hold rates near zero level for an extended period of time have given the markets the much-needed fillip. 

Tata Motors moved up 6% at Rs 845 on the Sensex. Mahindra & Mahindra, Hindalco Industries, Maruti Suzuki and DLF are the other gainers among the Sensex 30 stocks. On the other hand, ONGC, Hindustan Lever, Bharti Airtel, Tata Power and Sun Pharma Industries are among the top losers among the pack, down 1-2%.

Among the sectoral indices, BSE Auto is leading at 8,586, having gained 4%.

In a refreshing development, the IT index has snapped a six-session losing streak on bargain hunting. The sector had been spiralling over the recent instability in the global markets, mainly US and Europe. Infosys has soared by 2.6% at 2,440, TCS has gained 2.5% at Rs 991 and Wipro has added 2% at Rs 354.

The overall market breadth is positive as 2,165 stocks have advanced and 522 stocks have declined on the BSE.